What does a financial controller do?

What does a financial controller do?

The role of a controller seems to be well defined - it starts with responsibility and financial control of a company. It should be noted that the constant change within the modern company, as well as the growing importance of using data to guide decisions, have driven several changes within this role.

Today, it is a highly valued position in all finance departments, as financial controllers have a very specific role. By endowment, the decisions of a financial controller carry a lot of weight, since its main task originates in evaluating the financial aspect of the company with the purpose of guiding future decisions and investments of this same entity. Taking this into consideration, the financial controller is a main axis that provides a balance between the management and accounting of a company

Common tasks of a financial controller include:

  1. The preparation of annual budgets keeping in mind the development objectives of the company.  
  2. The allocation of budget  in matters of strategic decisions
  3. The collection of production and distribution costs to increase efficiency and reduce cost.  
  4. Analyze possible strategic decisions of the company  
  5. Focus on the design of information systems 
  6. Coordinate budgets  with the general objectives of the company
  7. Find ways to increase profitability 

The combination of these tasks implies that a financial controller must have good management of  digital management systems , such as ERP or expense management software, in order to develop a better strategic plan.

Where is a financial controller located in the hierarchy of the company?

A financial controller is usually located in the finance department of companies just below the company's finance director. In any case, the controller performs its activities better by having the freedom to manage and participate in each department of the company. The profile of a financial controller is usually a person with skills in Business Administration with a focus on finance or economics. These people usually have a track record with years of experience in various finance departments. Experience is useful to make better decisions that can help the growth of the company.